Banking watchdog warns housing prices could plunge 20% when 'speculative fever' breaks
Canada’s federal banking regulator described the housing market as being in the late stages of a “speculative fever,” and warned that prices could plunge by as much as 20 per cent in some markets.
“There is a speculative fever that takes over private markets and that’s what’s playing out,” in housing, Peter Routledge, head of the Office of the Superintendent of Financial Institutions, said on the latest edition of political consultant David Herle’s weekly podcast, The Herle Burly. “Looking ahead, it feels like we’re at the later stages of that phase. My expectation is that as rates go up, assuming they do, some of that fever is going to abate a little and you’ll see a slowdown in prices.”
Routledge, a former analyst at National Bank who was running Canada Deposit Insurance Corp. when he was tapped to lead the OSFI last year, described the surprising surge in home prices during the pandemic as a perfect storm.
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Canada’s federal banking regulator described the housing market as being in the late stages of a “speculative fever,” and warned that prices could plunge by as much as 20 per cent in some markets.
“There is a speculative fever that takes over private markets and that’s what’s playing out,” in housing, Peter Routledge, head of the Office of the Superintendent of Financial Institutions, said on the latest edition of political consultant David Herle’s weekly podcast, The Herle Burly. “Looking ahead, it feels like we’re at the later stages of that phase. My expectation is that as rates go up, assuming they do, some of that fever is going to abate a little and you’ll see a slowdown in prices.”
Routledge, a former analyst at National Bank who was running Canada Deposit Insurance Corp. when he was tapped to lead the OSFI last year, described the surprising surge in home prices during the pandemic as a perfect storm.
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Toronto Wants to Move Forward with a Home Speculation and Flipping Tax
A speculation tax could be one step further to becoming a reality in Toronto.
In response to soaring home prices that have made it increasingly unattainable for young people to purchase property, Toronto City Council agreed on Wednesday to ask the Ontario government to introduce a Home Speculation and Home Flipping Tax to crack down on people who own multiple properties. The motion was passed with overwhelming support for the initiative, with a 21:4 vote.
The goal is designed to target investors who are sweeping up homes and selling them for huge markups, resulting in defeating price hikes across the market. “Urgent action is needed to help stop the extreme increase in home prices in Toronto, driven by home flippers and land speculators who treat housing like a Bitcoin-type commodity,” reads the motion. The tax would be charged on the sale of non-principal residence homes.
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A speculation tax could be one step further to becoming a reality in Toronto.
In response to soaring home prices that have made it increasingly unattainable for young people to purchase property, Toronto City Council agreed on Wednesday to ask the Ontario government to introduce a Home Speculation and Home Flipping Tax to crack down on people who own multiple properties. The motion was passed with overwhelming support for the initiative, with a 21:4 vote.
The goal is designed to target investors who are sweeping up homes and selling them for huge markups, resulting in defeating price hikes across the market. “Urgent action is needed to help stop the extreme increase in home prices in Toronto, driven by home flippers and land speculators who treat housing like a Bitcoin-type commodity,” reads the motion. The tax would be charged on the sale of non-principal residence homes.
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The 2022 Luxury Report: Looking Forward Through An Evolving Lens
As price points drive upward across the entire industry, it has become more important than ever for those in the luxury real estate sphere to consider not just list prices, but so much more, when thinking about a luxury home. Those value-adding factors are ever evolving.
What was considered a luxury amenity just a few years ago may no longer classify, and the trend cycle has only been accelerated (and exaggerated) by the ongoing pandemic.
“Homebuyers in the luxury segment, both in town and recreational, are not only looking for high-quality, top-shelf materials and larger footprints in their properties,” Konidis says. “Because their homes have evolved into their lifestyle hub, we are seeing dedicated spaces for hobbies and interests like golf simulators and Peloton/meditation studios, in addition to spectacular pools (indoor and out), wine cellars, and extended garages or car lifts.”
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As price points drive upward across the entire industry, it has become more important than ever for those in the luxury real estate sphere to consider not just list prices, but so much more, when thinking about a luxury home. Those value-adding factors are ever evolving.
What was considered a luxury amenity just a few years ago may no longer classify, and the trend cycle has only been accelerated (and exaggerated) by the ongoing pandemic.
“Homebuyers in the luxury segment, both in town and recreational, are not only looking for high-quality, top-shelf materials and larger footprints in their properties,” Konidis says. “Because their homes have evolved into their lifestyle hub, we are seeing dedicated spaces for hobbies and interests like golf simulators and Peloton/meditation studios, in addition to spectacular pools (indoor and out), wine cellars, and extended garages or car lifts.”
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Market Watch Infographic-January 2022
قابل توجه خريداران و فروشندگان محترم خانه:
با يك تيم حرفه ای در زمينه فروش و خريد منزل رویایی شما از ابتدا تا انتها همراه شما هستيم.
خدمات ارائه شده:
- ارائه وام با کمترین نرخ بهره موجود در بازار
First, Second, Third Mortgages
- ارزیابی رایگان منزل شما Home Evaluation
- یافتن منزل رویایی شما با توجه به محل و بودجه
- دستیابی به اطلاعات کامل بازار جهت تصمیم گیری صحیح در هنگام خرید و یا فروش خانه
- خدمات ویژه برای خریداران بار اولی First Time Home Buyer
- خرید خانه برای سرمایه گذاری Investment Property
- تازه واردین به کانادا Newcomers
- غیر ساکنین کانادا Non-Resident
- خدمات بازسازی Renovation
☎️راههای ارتباطی با ما از طریق تلفن، ایمیل، واتس اپ، فیس بوک، اینستاگرام و تلگرام:
+1 (647) 772-9502
hoizady@yahoo.com
وب سایت:
https://www.homelifecimerman.com/Hojjatollah-Izady
فیسبوک:
https://www.facebook.com/Hojjatollah.Izady
اینستاگرام:
https://www.instagram.com/ihoizady/
واتس آپ:
https://wa.me/message/72TR24AJCPDPJ1
لینک تلگرام:
https://t.me/Buy_and_Sell_Property_in_Toronto
.
قابل توجه خريداران و فروشندگان محترم خانه:
با يك تيم حرفه ای در زمينه فروش و خريد منزل رویایی شما از ابتدا تا انتها همراه شما هستيم.
خدمات ارائه شده:
- ارائه وام با کمترین نرخ بهره موجود در بازار
First, Second, Third Mortgages
- ارزیابی رایگان منزل شما Home Evaluation
- یافتن منزل رویایی شما با توجه به محل و بودجه
- دستیابی به اطلاعات کامل بازار جهت تصمیم گیری صحیح در هنگام خرید و یا فروش خانه
- خدمات ویژه برای خریداران بار اولی First Time Home Buyer
- خرید خانه برای سرمایه گذاری Investment Property
- تازه واردین به کانادا Newcomers
- غیر ساکنین کانادا Non-Resident
- خدمات بازسازی Renovation
☎️راههای ارتباطی با ما از طریق تلفن، ایمیل، واتس اپ، فیس بوک، اینستاگرام و تلگرام:
+1 (647) 772-9502
hoizady@yahoo.com
وب سایت:
https://www.homelifecimerman.com/Hojjatollah-Izady
فیسبوک:
https://www.facebook.com/Hojjatollah.Izady
اینستاگرام:
https://www.instagram.com/ihoizady/
واتس آپ:
https://wa.me/message/72TR24AJCPDPJ1
لینک تلگرام:
https://t.me/Buy_and_Sell_Property_in_Toronto
.
Doug Ford's housing task force calls for more density, less public consultation
Ontario should aim to build 1.5 million new homes in the next decade by increasing density in urban and suburban areas and by drastically overhauling how cities approve housing projects, says a new report commissioned by Premier Doug Ford's government.
The Housing Affordability Task Force makes 55 recommendations aimed at reining in home prices by dramatically boosting the supply of housing. The cost of buying the average home in Ontario has nearly tripled over the past 10 years.
The report is to be released publicly on Tuesday morning, less than two months after Ford and Minister of Municipal Affairs and Housing Steve Clark appointed the task force. The government provided CBC News with a copy in advance.
"We are in a housing crisis and that demands immediate and sweeping reforms," says a letter in the report from task force chair Jake Lawrence, CEO of Scotiabank Global Banking and Markets.
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Ontario should aim to build 1.5 million new homes in the next decade by increasing density in urban and suburban areas and by drastically overhauling how cities approve housing projects, says a new report commissioned by Premier Doug Ford's government.
The Housing Affordability Task Force makes 55 recommendations aimed at reining in home prices by dramatically boosting the supply of housing. The cost of buying the average home in Ontario has nearly tripled over the past 10 years.
The report is to be released publicly on Tuesday morning, less than two months after Ford and Minister of Municipal Affairs and Housing Steve Clark appointed the task force. The government provided CBC News with a copy in advance.
"We are in a housing crisis and that demands immediate and sweeping reforms," says a letter in the report from task force chair Jake Lawrence, CEO of Scotiabank Global Banking and Markets.
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Ontario mayors speak out against proposal to give more power over housing to province
Ontario mayors are raising concerns about a new report from a Ford government task force that recommends taking some control over housing policy away from municipalities and giving it to the province.
Among other things, the report from the Housing Affordability Task Force, released early Tuesday morning, is calling for "binding provincial action" to allow buildings up to four storeys tall, and up to four units, on a residential lot. It's also calling for less public consultation.
Toronto Mayor John Tory told reporters Tuesday he's had "extensive discussions" with Premier Doug Ford and Municipal Affairs and Housing Minister Steve Clark.
"I have emphasized to them that it is local officials ... who know best, not the provincial government," Tory said.
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Ontario mayors are raising concerns about a new report from a Ford government task force that recommends taking some control over housing policy away from municipalities and giving it to the province.
Among other things, the report from the Housing Affordability Task Force, released early Tuesday morning, is calling for "binding provincial action" to allow buildings up to four storeys tall, and up to four units, on a residential lot. It's also calling for less public consultation.
Toronto Mayor John Tory told reporters Tuesday he's had "extensive discussions" with Premier Doug Ford and Municipal Affairs and Housing Minister Steve Clark.
"I have emphasized to them that it is local officials ... who know best, not the provincial government," Tory said.
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The task force recommendations aim to have 1.5 million homes built in the next 10 years across Ontario at a time when an estimated 70 per cent of land zoned for housing in Toronto is restricted to single-detached or semi-detached homes. That's as the cost of buying a home has nearly tripled in the area over the past 10 years.
"I am truly disappointed in the housing task force report," said Aurora Mayor Tom Mrakas in a statement.
"Apparently, the solution to the housing affordability crisis is to limit public input and allow developers to build whatever they want, wherever they want. Profit driven public planning won't solve the affordability crisis in our communities."
The report specifies that affordable housing was not part of the task force's mandate and that cabinet would deal with that issue separately.
A statement released Tuesday by the organization Ontario Big City Mayors, of which Tory is a member, also expressed concerns.
"Unilateral actions, absent municipal input, may have unintended consequences that slow down development and reduce the community support needed to continue to sustainably add housing," the statement reads.
"While overcoming NIMBYism is essential to success, so is respect for local decision-making and the democratic process."
The acronym NIMBY stands for "Not In My Back Yard" and describes a belief among some homeowners in single-family neighbourhoods that building denser communities and more affordable housing is great in theory, but not close to where they live.
The task force report raises concerns with NIMBYism, which it says some have now re-termed BANANA (Build Absolutely Nothing Anywhere Near Anything).
"My neighbour can tear down what was there to build a monster home, but I'm not allowed to add a basement suite to my home," the report quotes one homeowner as saying.
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"I am truly disappointed in the housing task force report," said Aurora Mayor Tom Mrakas in a statement.
"Apparently, the solution to the housing affordability crisis is to limit public input and allow developers to build whatever they want, wherever they want. Profit driven public planning won't solve the affordability crisis in our communities."
The report specifies that affordable housing was not part of the task force's mandate and that cabinet would deal with that issue separately.
A statement released Tuesday by the organization Ontario Big City Mayors, of which Tory is a member, also expressed concerns.
"Unilateral actions, absent municipal input, may have unintended consequences that slow down development and reduce the community support needed to continue to sustainably add housing," the statement reads.
"While overcoming NIMBYism is essential to success, so is respect for local decision-making and the democratic process."
The acronym NIMBY stands for "Not In My Back Yard" and describes a belief among some homeowners in single-family neighbourhoods that building denser communities and more affordable housing is great in theory, but not close to where they live.
The task force report raises concerns with NIMBYism, which it says some have now re-termed BANANA (Build Absolutely Nothing Anywhere Near Anything).
"My neighbour can tear down what was there to build a monster home, but I'm not allowed to add a basement suite to my home," the report quotes one homeowner as saying.
.
با وجود کووید-19، سرشماری نشان می‌دهد که کانادا با سریع‌ترین نرخ در G7 رشد کرده است
آمار کانادا می گوید جمعیت ملی در سال گذشته تقریباً به 37 میلیون نفر رسید زیرا با سریع ترین نرخ در میان کشورهای G7 رشد کرد.
این آژانس می گوید جمعیت کانادا در روز سرشماری سال گذشته کمی بیش از 36.9 میلیون نفر بود که بین سال های 2016 تا 2021 برابر 5.2 درصد رشد داشت.
نرخ رشد پنج ساله دو برابر هر کشور همتای G7 بود و اداره آمار کانادا می گوید که بیشتر رشد قبل از شروع همه گیری در سال 2020 اتفاق افتاده است.
آمار کانادا می‌گوید دلیل اصلی کاهش رشد، محدودیت‌های مرزی بوده است که اگرچه به منظور کاهش سرعت گسترش کووید-19 بود، اما سرعت ورود تازه واردان به کانادا را نیز کاهش داد.
این آژانس می گوید رشد جمعیت قبل از همه گیری در بالاترین حد خود بود و سپس در سال 2020 به کمترین میزان خود در یک قرن اخیر رسید.
آمار کانادا می گوید در سال 2021، در مقایسه با سال 2016، حدود 1.8 میلیون نفر بیشتر از این کشور به کشور خود می گفتند که از هر پنج نفر، چهار نفر مهاجر بودند.
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آمار کانادا می گوید جمعیت ملی در سال گذشته تقریباً به 37 میلیون نفر رسید زیرا با سریع ترین نرخ در میان کشورهای G7 رشد کرد.
این آژانس می گوید جمعیت کانادا در روز سرشماری سال گذشته کمی بیش از 36.9 میلیون نفر بود که بین سال های 2016 تا 2021 برابر 5.2 درصد رشد داشت.
نرخ رشد پنج ساله دو برابر هر کشور همتای G7 بود و اداره آمار کانادا می گوید که بیشتر رشد قبل از شروع همه گیری در سال 2020 اتفاق افتاده است.
آمار کانادا می‌گوید دلیل اصلی کاهش رشد، محدودیت‌های مرزی بوده است که اگرچه به منظور کاهش سرعت گسترش کووید-19 بود، اما سرعت ورود تازه واردان به کانادا را نیز کاهش داد.
این آژانس می گوید رشد جمعیت قبل از همه گیری در بالاترین حد خود بود و سپس در سال 2020 به کمترین میزان خود در یک قرن اخیر رسید.
آمار کانادا می گوید در سال 2021، در مقایسه با سال 2016، حدود 1.8 میلیون نفر بیشتر از این کشور به کشور خود می گفتند که از هر پنج نفر، چهار نفر مهاجر بودند.
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‘Absolutely the Right Direction’: Experts Weigh in On Housing Affordability Task Force Proposals
The 55-part proposal unveiled yesterday by the Ontario Housing Affordability Task Force has mostly been lauded by building industry insiders, with many crediting its ambition — but whether or not the recommendations materialize remains to be seen.
To realize its lofty goal of building 1.5M new homes in the province over the next decade, the Ontario Housing Affordability Task Force recommends overhauling residential zoning; amending infill regulations in the yellow belt to allow up to four units and as many storeys rather than only permitting single- and semi-detached housing; defanging NIMBYs who frequently object to affordable housing development in their neighbourhoods; and more.
The series of recommendations could profoundly impact both the planning process and land use in Ontario, the latter of which has a lot of gaps.
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The 55-part proposal unveiled yesterday by the Ontario Housing Affordability Task Force has mostly been lauded by building industry insiders, with many crediting its ambition — but whether or not the recommendations materialize remains to be seen.
To realize its lofty goal of building 1.5M new homes in the province over the next decade, the Ontario Housing Affordability Task Force recommends overhauling residential zoning; amending infill regulations in the yellow belt to allow up to four units and as many storeys rather than only permitting single- and semi-detached housing; defanging NIMBYs who frequently object to affordable housing development in their neighbourhoods; and more.
The series of recommendations could profoundly impact both the planning process and land use in Ontario, the latter of which has a lot of gaps.
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GTA Industrial Land Costs Have Almost Doubled in 18 Months
The cost of industrial land in the Greater Toronto Area surged by a third of its value in 2021.
We entered 2021 with land values in the ballpark of around $2M an acre and today you’re at $3.5-5M an acre for industrial land, so they’ve almost doubled in a span of around a year and a half. “What’s driving a lot of that is the growth in rents: if a landlord or developer thinks that they can build a site and lease it out for a much higher rent, they can afford to pay more for land, and that competition — because developers compete against each other — has pushed land up.”
According to data provided by Colliers, GTA land values rose by 32.9% year over year last quarter, while the net asking rent hit $12.66 per square foot in Q4-2021, up by 23.9% from the prior-year period as a result of availability dropping by 80 basis points to 0.7%. And because being a landlord is so profitable, there’s scant product for sale.
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The cost of industrial land in the Greater Toronto Area surged by a third of its value in 2021.
We entered 2021 with land values in the ballpark of around $2M an acre and today you’re at $3.5-5M an acre for industrial land, so they’ve almost doubled in a span of around a year and a half. “What’s driving a lot of that is the growth in rents: if a landlord or developer thinks that they can build a site and lease it out for a much higher rent, they can afford to pay more for land, and that competition — because developers compete against each other — has pushed land up.”
According to data provided by Colliers, GTA land values rose by 32.9% year over year last quarter, while the net asking rent hit $12.66 per square foot in Q4-2021, up by 23.9% from the prior-year period as a result of availability dropping by 80 basis points to 0.7%. And because being a landlord is so profitable, there’s scant product for sale.
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What Exodus? Toronto’s Downtown Population Grew 16% in the Last 5 Years
While it may come as a surprise to its residents, the population in downtown Toronto is growing rapidly.
According to just-released 2021 census data from Statistics Canada (StatsCan), the population in Toronto’s downtown core grew by 16.1% between 2016 and 2021.
This comes despite the lingering (see: never ending) pandemic restrictions that leave downtown office buildings vacant, and among on-going narratives about countless residents packing up and leaving the city core to larger and more affordable pastures. Perhaps many former pavement pounders — fuelled by a new-found remote work culture — did indeed kiss downtown Toronto’s concrete goodbye in recent years.
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While it may come as a surprise to its residents, the population in downtown Toronto is growing rapidly.
According to just-released 2021 census data from Statistics Canada (StatsCan), the population in Toronto’s downtown core grew by 16.1% between 2016 and 2021.
This comes despite the lingering (see: never ending) pandemic restrictions that leave downtown office buildings vacant, and among on-going narratives about countless residents packing up and leaving the city core to larger and more affordable pastures. Perhaps many former pavement pounders — fuelled by a new-found remote work culture — did indeed kiss downtown Toronto’s concrete goodbye in recent years.
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26 Denham Dr
Richmond Hill Ontario L4C6J1
Detached
For Sale Listed for: $6,500,000
4+1 Bedrooms
7 Bathrooms
3 Garage
Tax:
Property Type: Detached, Bungalow
Building Age: -
Size: 10,000 feet²
Lot Size: 114.99 × 263.58 feet
Parking: Attached 3 Garage, 6 parking
Basement: Fin W/O
Description:
Tuscan Treasure. A Blend Of Cherished Amenities, Prime Location And Classic Style. Ontario, Canada Comfort And Elegance For Modern Living Meld Beautifully In This Magnificent Estate Located In The Most Enticing Area Of South Richvale. Sited On A Premium South Facing Lot With A Gated Circular Motor Court. The Home Features Approximately 10,000 Square Feet And Is Spirited With A Bright And Cheerful Ambience. Each Room Of The Dwelling Boasts An Individual Flavour
For Booking please call:
Hojjatollah Izady
Realtor
HomeLife/Cimerman Real Estate Ltd., Brokerage
647-772-9502
hoizady@yahoo.com
.
Richmond Hill Ontario L4C6J1
Detached
For Sale Listed for: $6,500,000
4+1 Bedrooms
7 Bathrooms
3 Garage
Tax:
Property Type: Detached, Bungalow
Building Age: -
Size: 10,000 feet²
Lot Size: 114.99 × 263.58 feet
Parking: Attached 3 Garage, 6 parking
Basement: Fin W/O
Description:
Tuscan Treasure. A Blend Of Cherished Amenities, Prime Location And Classic Style. Ontario, Canada Comfort And Elegance For Modern Living Meld Beautifully In This Magnificent Estate Located In The Most Enticing Area Of South Richvale. Sited On A Premium South Facing Lot With A Gated Circular Motor Court. The Home Features Approximately 10,000 Square Feet And Is Spirited With A Bright And Cheerful Ambience. Each Room Of The Dwelling Boasts An Individual Flavour
For Booking please call:
Hojjatollah Izady
Realtor
HomeLife/Cimerman Real Estate Ltd., Brokerage
647-772-9502
hoizady@yahoo.com
.